Domestic Mail

HANDBOOK DM-109 REVISION

New Process for Annual Zone Analysis for Periodicals

Effective March 17, 2005, we are revising Handbook DM-109, Business Mail Acceptance, by replacing chapter 6. The new chapter 6 discusses postage payment review procedures. These procedures replace the current postage payment review procedures described in Handbook DM-202, Periodicals Postage Payment Review. Consequently, we are also obsoleting Handbook DM-202.

The Postal ServiceTM has revised the review process because of improvements in the software that produces documentation for Periodicals and the extensive time it took Postal Service personnel to perform these reviews under the previous process. The revised procedures - titled the Zone Analysis Program (ZAP) - use mailer options and Postal Service verification of documentation. The Postal Service developed ZAP to assist publishers and Postal Service personnel in verifying the correct zone allocation and postage payment for Periodicals mailings, including identification as In-County or Outside County, based on USPS® national electronic zone charts.

The Postal Service requires each publication to undergo a complete ZAP verification at least once a year. The office that performs the verification is the office where mail is entered and postage is paid - regardless of whether that office is the original or additional entry office. The postmaster (or designee) of that office normally schedules these reviews.

Handbook DM-109 is available on the Postal Service PolicyNet Web site:

• Go to http://blue.usps.gov.

• Under "Essential Links" in the left-hand column, click on References.

• Under "References" in the right-hand column, under "Policies," click on PolicyNet.

• Click on PUBs.

(The direct URL for the Postal Service PolicyNet Web site is http://blue.usps.gov/cpim.)

Handbook DM-109, Business Mail Acceptance

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[Revise chapter 6 in its entirety to read as follows:]

6 Periodicals

6-1 Confirming Zone Distribution

6-1.1 Overview

The Postal Service must ensure that the zones claimed and the postage paid by a Periodicals publisher are accurate and reflect the most current zone information. Postmasters must follow the processes listed in this chapter when confirming the accuracy of a publisher's zone distribution.

The Postal Service verifies documentation through its Zone Analysis Program (ZAP). The Postal Service developed ZAP to assist publishers and Postal Service personnel in verifying the correct zone allocation and postage payment for Periodicals mailings, including identification as In- County or Outside County, based on USPS® national electronic zone charts. ZAP-approved software accurately assigns zones using the USPS national electronic zone charts and is updated at least once each calendar year.

6-1.2 Publications That Must Confirm Zone Accuracy

The Postal Service confirms zone accuracy for all publications except for nonprofit publications that have 10% or less advertising and that claim the Outside County pound rates for their copies.

6-1.3 Frequency of Zone Accuracy Confirmation

For all publications (with the exceptions noted in section 6-1.2), the Postal Service performs a zone accuracy review once each year.

6-1.4 Postmaster's Confirmation of Zone Accuracy

The postmaster (or designee) of the office(s) where a publication's mailings are entered for verification and acceptance (i.e., any office where the mail is entered and postage is paid) is responsible for either ensuring that the documentation presented is ZAP-approved or confirming through a manual review process that the publisher's zone distribution is accurate. The verification office could be the original or additional entry office or both.

6-2 Publisher's Options

6-2.1 Overview

The publisher has several options to document its zone distribution accuracy:

a. Option 1.

b. Option 2-A.

c. Option 2-B.

d. Option 3.

e. Option 4-A

f. Option 4-B.

Depending on which option the publisher chooses, the publisher and postmaster have different responsibilities, as described in the following sections.

6-2.2 Option 1

Publisher: A publisher using PAVE-certified software for Periodicals mailings must certify on PS Form 3541, Postage Statement - Periodicals: One Issue or One Edition, that the software has been PAVE-certified. (This meets the ZAP-approval requirements, because all PAVE-certified software is also ZAP-approved.) In addition, the heading on the USPS qualification report must show the date of the USPS national electronic zone chart data.

Note: Presort Accuracy Validation and Evaluation (PAVE) is a software certification program that serves as a standard of excellence for presort software products. The program analyzes presorting software products to determine their mail-sorting accuracy based on Domestic Mail Manual (DMM®) standards. Software products that successfully complete the PAVE tests are granted PAVE certification.

Postmaster: The postmaster (or designee) must verify at the time of acceptance that the publisher has certified on PS Form 3541 that the mailings were PAVE-certified (and therefore ZAP-approved).

Procedures: No further review is necessary.

6-2.3 Option 2-A

Publisher: A publisher using ZAP-approved software must certify on PS Form 3541 that the software has been ZAP-approved. In addition, the heading on the USPS qualification report must show the date of the USPS national electronic zone chart data.

Postmaster: The postmaster (or designee) must verify at the time of acceptance that the publisher has certified on PS Form 3541 that the mailings were ZAP-approved.

Procedures: No further review is necessary.

6-2.4 Option 2-B

Publisher: A publisher using ZAP-approved software but not submitting PS Form 3541 or a USPS qualification report must submit a Mail.dat file with a header record indicating that the software has been ZAP-approved and showing the date of the USPS national electronic zone chart data.

Postmaster: The postmaster (or designee) must verify at the time of acceptance that the publisher has certified in the Mail.dat header that the mailings were ZAP-approved.

Procedures: No further review is necessary.

6-2.5 Option 3

Publisher: A publisher using software that is not approved by the National Customer Support Center (NCSC) must submit with each mailing PS Form 3541 and standardized documentation that includes the 3-digit zone listing and the summary zone listing. (These listings enable the postmaster to verify that the software accurately assigned zone information.)

Postmaster: The postmaster (or designee) must perform an annual zone analysis for each publication entered at his or her office.

Procedures: The reviewing Post OfficeTM verifies the publisher's documentation by manually comparing the publisher's 3-digit zone listing to the current USPS national electronic zone charts and by comparing the summary zone listing to the zone information on PS Form 3541.

Note: For Option 3, Post Office personnel conduct the verification procedures after they have accepted the selected Periodicals mailing.

6-2.6 Option 4-A

Publisher: A publisher not using a software program to confirm zone accuracy must submit with each mailing PS Form 3541 and standardized documentation that includes the 3-digit zone listing and the summary zone listing. The publisher may submit this documentation in handwritten form.

Postmaster: The postmaster (or designee) must perform an annual zone analysis for each publication entered at his or her office.

Procedures: The reviewing Post Office verifies the publisher's documentation by manually comparing the publisher's 3-digit zone listing to the current USPS national electronic zone charts and by comparing the summary zone listing to the zone information on PS Form 3541.

Note: For Option 4-A, Post Office personnel conduct the verification procedures after they have accepted the selected Periodicals mailing.

6-2.7 Option 4-B

Publisher: A publisher who normally manually separates its zones and presort without documentation must submit for the verified issue PS Form 3541 and standardized documentation that includes a manually created 3-digit zone listing and the summary zone listing. The publisher may submit this information in handwritten form.

Postmaster: The postmaster (or designee) must perform an annual zone analysis for each publication entered at his or her office.

Procedures: The reviewing Post Office verifies the publisher's documentation by manually comparing the publisher's 3-digit zone listing to the current USPS national electronic zone charts and by comparing the summary zone listing to the zone information on PS Form 3541.

Note: For Option 4-B, Post Office personnel conduct the verification procedures after they have accepted the selected Periodicals mailing.

6-3 Discrepancies

If the postmaster's zone analysis indicates that the publisher has made an overpayment or underpayment, the postmaster must resolve the issue with the publisher and either refund the overpayment or collect the deficiency according to Management Instruction DM-140-2001-1, Assessing and Collecting Deficiencies in Postage or Fees.

6-4 Maintaining Records

The original or additional entry office that performs the zone analysis maintains for 2 years the following items:

a. Results of the review.

b. At least one page from the USPS qualification report.

c. The detailed zone listing.

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- Business Mail Acceptance,
Service and Market Development, 3-17-05

DMM REVISION

Changes to Labeling Mixed ADC Bundles and Sacks

In the article titled "DMM Revision: Changes to Labeling Mixed ADC Bundles and Sacks" in Postal Bulletin 22147 (2-3-05, pages 10-17), we inadvertently revised a reference to labeling lists for mailings of nonautomation flats. Below, we have included the corrected text for footnote 3 in the optional endorsement line (OEL) exhibit in M013.2.5 and in the summaries of labeling lists L010 and L011.

In addition, we have revised Domestic Mail Manual (DMM®) items M210.4.0f, M610.4.6e, M722.2.4e, M730.2.4d, and M740.2.4d to allow use of L004 through May 14, 2005, for OEL and sack labeling for mixed area distribution center (ADC) bundles and sacks of nonautomation rate flats mailed at Periodicals, Standard Mail, and Packages Services rates. The revision in each of these sections reads, "(1) Line 1: Use L009, effective May 15, 2005. Until then, use `MXD' followed by city, state, and ZIP Code of ADC serving the 3-digit ZIP Code prefix of the entry post office as shown in L004, or use L009."

We will incorporate these revisions into the next printed version of the DMM and into the online version available via Postal Explorer® at http://pe.usps.com.

Domestic Mail Manual (DMM)

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L Labeling Lists

L000 General Use

L010 BMC/ASF Entry-Standard Mail Letters and Package Services Irregular Parcels

Summary

[Revise text to read as follows:]

L010 indicates the label destination (Column B) for mixed AADC and mixed ADC trays of Standard Mail letters and mixed ADC sacks of Package Services irregular parcels placed on an ASF or BMC pallet, or entered at an ASF or BMC (Column A).

Through May 14, 2005, this list also may be used for mixed ADC bundles and sacks of automation rate Periodicals and Standard Mail flats and barcoded Bound Printed Matter flats when these mailings are entered at a BMC/ASF facility. Effective May 15, 2005, L009 must be used when labeling mixed ADC bundles and sacks of these types of mailings.

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L011 Non-BMC/ASF Entry-Periodicals and Standard Mail Letters

Summary

[Revise text to read as follows:]

L011 describes the service area by individual 3-digit ZIP Code prefix for mixed AADC and mixed ADC trays of Periodicals and Standard Mail letters.

Through May 14, 2005, this list also may be used for mixed ADC bundles and sacks of automation rate Periodicals and Standard Mail flats and barcoded Bound Printed Matter flats. Effective May 15, 2005, L009 must be used when labeling mixed ADC bundles and sacks of these types of mailings.

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M Mail Preparation and Sortation

M000 General Preparation Standards

M010 Mailpieces

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M013 Optional Endorsement Lines

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2.0 FORMAT

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2.5 ZIP Code Information

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Exhibit 2.5 OEL Labeling Lists

[Revise table and footnote 3 in Exhibit 2.5 to read as follows:]

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- Mailing Standards, Pricing and Classification, 3-17-05

OBSOLETE HANDBOOK

Handbook DM-202, Periodicals Postage Payment Review

Effective March 17, 2005, Handbook DM-202, Periodicals Postage Payment Review, is obsolete.

Handbook DM-202 is replaced by the revised chapter 6 in Handbook DM-109, Business Mail Acceptance. That chapter discusses postage payment review procedures.

For more information on postage payment review procedures, see the article titled "Handbook DM-109 Revision: New Process for Annual Zone Analysis for Periodicals," starting on page 7 in this Postal Bulletin.

- Business Mail Acceptance,
Service and Market Development, 3-17-05

REVISED FORMS

Redesigned Postage Statements

Effective April 3, 2005, the following redesigned postage statements for First-Class Mail® service (including Priority Mail® service), Standard Mail® service (including Nonprofit Standard Mail service), and Periodicals will be available through the Material Distribution Center and online at www.usps.com/forms and http://blue.usps.gov/formmgmt/forms.htm:

• PS Form 3541, Postage Statement - Periodicals - One Issue or One Edition.

• PS Form 3600-EZ, Postage Statement - First-Class Mail - Easy - Nonautomation Letters, Cards, or Flats.

• PS Form 3600-R, Postage Statement - First-Class Mail & Priority Mail.

• PS Form 3602-EZ, Postage Statement - Standard Mail - Easy - Nonautomation Letters or Flats.

• PS Form 3602-N, Postage Statement - Nonprofit Standard Mail.

• PS Form 3602-NZ, Postage Statement - Nonprofit Standard Mail - Easy - Nonautomation Letters or Flats.

• PS Form 3602-R, Postage Statement - Standard Mail.

These redesigned postage statements streamline the number of forms that mailers must submit with mailings. Mailers may continue to use existing forms unless they are participating in the repositionable notes or co-palletization experiments or are using detached address labels with mailed items. Postage statements for Package Services are not changed at this time. To reflect the redesigned forms, we will modify references to postage statements in the Domestic Mail Manual (DMM®). (For more information on the DMM, see the article titled "DMM Announcement: Domestic Mail Manual Redesign," starting on page 72 in this Postal Bulletin.)

The redesigned postage statements reduce the number of forms mailers need by providing one form that includes all rates for each category or class of mail plus an "EZ" form. First-Class Mail rates and Priority Mail rates are combined on one form (PS Form 3600-R), Standard Mail rates are on one form (PS Form 3602-R), and Nonprofit Standard Mail rates are on one form (PS Form 3602-N). Although we have not reduced the number of Periodicals forms, we have modified PS Form 3541 to include current experimental classifications involving Periodicals mail. For nonautomation letters and flats, mailers may use PS Form 3600-EZ for First-Class Mail, Standard Mail, and Nonprofit Standard Mail services.

Although several of the new forms have multiple pages, the new forms allow mailers to use only the pages needed for a particular mailing. The first page of PS Forms 3541, 3600-R, 3602-N, and 3602-R includes a "Parts Completed" section, which allows mailers to identify the parts of the postage statement they will use. Mailers complete the identified parts and include only the identified parts with the first page. Mailers can choose the pages they need based on the type of mail. To allow mailers to include extra services, PS Forms 3600-R, 3602-N, and 3602-R include a new Part S. Also, the Instructions page on each form contains additional information.

Copies of the revised postage statements appear starting on page 12 of this Postal Bulletin.

Following is a list of postage statements under the headings for each class of mail.

First-Class Mail Service (Including Priority Mail Service)

• PS Form 3600-EZ, Postage Statement - First-Class Mail - Easy - Nonautomation Letters, Cards, or Flats.

• PS Form 3600-R, Postage Statement - First-Class Mail & Priority Mail.

These redesigned forms include the "Privacy Policy" notice and additional instructions. PS Form 3600-R now has a section called "Prepaid Returns" and includes the repositionable notes experiment. Both PS Forms 3600-EZ and 3600-R now consolidate all postage payment methods (permit imprint, metered, or precanceled stamps) on a single form. The redesigned PS Form 3600-R includes rates for First-Class Mail service and Priority Mail service. However, mailers must not combine mailings of First-Class Mail service and Priority Mail service on the same statement. Because the redesigned PS Form 3600-R includes all First-Class Mail and Priority Mail rates, the following forms will be eliminated in the future:

• PS Form 3600-P, Postage Statement - First-Class Mail - Postage Affixed.

• PS Form 3600-PM, Postage Statement - Priority Mail - Permit Imprint.

• PS Form 3600-PMX, Postage Statement - Priority Mail Flat-Rate Box Experiment - Permit Imprint.

Periodicals

• PS Form 3541, Postage Statement - Periodicals - One Issue or One Edition.

• PS Form 3541-A, Postage Statement - Periodicals - Condensed - One Issue or One Edition.

• PS Form 3541-M, Postage Statement - Periodicals - All Issues in a Calendar Month.

The only Periodicals postage statement that changed is PS Form 3541, which has been modified to include the "Privacy Policy" notice, additional instructions, and the inclusion of the repositionable notes and co-palletization experiments.

Standard Mail Service

• PS Form 3602-C, Consolidated Postage Statement - Supplement - Standard Mail and Nonprofit Standard Mail.

• PS Form 3602-EZ, Postage Statement - Standard Mail - Easy - Nonautomation Letters or Flats.

• PS Form 3602-R, Postage Statement - Standard Mail.

No changes were made to PS Form 3602-C. The redesigned PS Forms 3602-EZ and 3602-R include the "Privacy Policy" notice, additional instructions, a data collection box for detached address labels, and the repositionable notes experiment. Both PS Forms 3602-EZ and 3602-R now consolidate all postage payment methods (permit imprint, metered, or precanceled stamps) on a single form. Because the redesigned PS Form 3602-R includes all regular Standard Mail rates, the following forms will be eliminated in the future:

• PS Form 3602-HP, Postage Statement - Standard Mail Heavy Letters - Postage Affixed.

• PS Form 3602-HR, Postage Statement - Standard Mail Heavy Letters - Permit Imprint.

• PS Form 3602-P, Postage Statement - Standard Mail Letters and Flats - Postage Affixed.

• PS Form 3602-PS, Postage Statement - Standard Mail Subject to Surcharge - Postage Affixed.

• PS Form 3602-RS, Postage Statement - Standard Mail Subject to Surcharge - Permit Imprint.

Nonprofit Standard Mail Service

• PS Form 3602-C, Consolidated Postage Statement - Supplement - Standard Mail and Nonprofit Standard Mail.

• PS Form 3602-N, Postage Statement - Nonprofit Standard Mail.

• PS Form 3602-NZ, Postage Statement - Nonprofit Standard Mail - Easy - Nonautomation Letters or Flats.

No changes were made to PS Form 3602-C. The redesigned PS Forms 3602-N and 3602-NZ include the "Privacy Policy" notice, additional instructions, a data collection box for detached address labels, and the repositionable notes experiment. Both PS Forms 3602-N and 3602-NZ now consolidate all postage payment methods (permit imprint, metered, or precanceled stamps) on a single form. Because the redesigned PS Form 3602-N statement includes all Nonprofit Standard Mail rates, the following forms will be eliminated in the future:

• PS Form 3602-NHP, Postage Statement - Nonprofit Standard Mail Heavy Letters - Postage Affixed.

• PS Form 3602-NHR, Postage Statement - Nonprofit Standard Mail Heavy Letters - Permit Imprint.

• PS Form 3602-NP, Postage Statement - Nonprofit Standard Mail Letters and Flats - Postage Affixed.

• PS Form 3602-NPS, Postage Statement - Nonprofit Standard Mail Subject to Surcharge - Postage Affixed.

• PS Form 3602-NS, Postage Statement - Nonprofit Standard Mail Subject to Surcharge - Permit Imprint.

Extra Services

PS Form 3540-S, Postage Statement - Extra Services, is still available. Mailers can choose to use the existing PS Form 3540-S or Part S of the redesigned forms.

- Mailing Standards,
Pricing and Classification, 3-17-05